Benefit Cap Payment Sample Clauses
A Benefit Cap Payment clause sets a maximum limit on the total amount of benefits or payments that can be made under a contract. In practice, this means that regardless of the number or value of claims made, the aggregate payments to a party cannot exceed the specified cap. For example, if an insurance policy includes a benefit cap, the insurer will not pay more than the capped amount even if the actual losses are higher. The core function of this clause is to control financial exposure and provide certainty regarding the maximum liability for the paying party.
Benefit Cap Payment. The district shall contribute eight hundred fifty dollars and ninety-six cents ($850.96) per month towards health benefit plans effective October 1, 2005. The remaining balance of monthly premium will be paid through payroll deduction.